Orange County Businesses need EPLI – Employment Practices Liability Insurance

Often confused with D&O and E&O insurance, EPLI (Employment Practices Liability Insurance) is a bit different in that coverage is for employers against claims made by workers who sue a company for violating their legal rights as workers.

Employment Practices Liability Insurance can shield you from some of the astronomical legal expense involved in litigation. Purchasing an EPLI insurance policy in Orange County can guard you against these common lawsuit claims.

• Wrongful termination – A wrongful termination occurs when an employer releases a worker from their duties in a wrongful and illegal manner according to that worker’s rights. Some wrongful termination examples are breach of contract, sexual harassment and race discrimination.

• Breach of Contract – More often than not, a breach of contract will occur under the spectrum of a union and one of its workers. There are stipulations under which the guidelines must be met for the proper termination of a worker. If a worker disagrees with their termination and believes it to be against their union contract, they may then follow up with a grievance. If the grievance is not satisfactorily met on behalf of the worker, that worker may pursue costly legal actions against the employer.

• Sexual harassment – Sexual harassment falls under different categories. One of those categories creates a situation wherein a worker feels if they balk against sexual innuendos in the form of unwelcome sexual advances whether verbal or physical, their jobs will be in trouble. They may be in trouble of losing their job or not getting a raise or promotion. Another type of sexual harassment is one wherein the worker cannot perform his or her work duties to full capacity or the environment surrounding the employer and worker becomes volatile.

• Defamation of character – Defamation of character occurs when an employer makes an untrue statement that is harmful to the worker. This can either come in the form of a verbal or written statement.

• Failure to promote – Failure to promote can occur if a worker has justified and valid complaints wherein others are being promoted and they are not getting promotions. The worker believes there is some other reason, of course, other than work performance for this behavior on behalf of the employer.

• Race discrimination – Race discrimination can occur if a worker is let go due to their religious beliefs or ethnic background.

After reading the above, you can get a feeling that if you are an employer in today’s world, there is the possibility of experiencing one of these difficult situations from a worker.

Obtaining EPLI for your Orange County business will defray the costs of a damaging lawsuit that may negatively affect your business. You have worked hard to establish your business, why not protect it to the fullest. Purchasing an Employment Practices Liability Insurance policy is a smart and practical business decision.